Gold miners rally after China resumes gold purchases
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The news: Gold miners gained on the ASX after China's central bank announced that it has resumed purchases of the precious metal, and as expectations rise for a further rate cut by the US Federal Reserve next week.
The numbers: Gold stocks Vault Miners (4.3%), Regis Resources (4.3%), Evolution Mining (4.2%) and Emerald Resources (4.1%) made up four of the top 10 best performing ASX 200 companies by 1:40pm AEDT.
Materials, up 2.9%, was the best performing sector as the market fell 0.6%.
The context: Gold prices hit two-week highs on Monday, climbing more than 1% on renewed buying by The People's Bank of China after a six-month hiatus, Reuters reported.
Spot gold was last up 0.3% to USD2,668.66 ($4,155.50) per ounce.
Traders were also encouraged by increased expectations of a US Federal Reserve interest rate cut next week, with Friday's US monthly employment data not so strong as to rule out another reduction.
